Queen's diamond jubilee BBC strike threat averted

Queen Elizabeth II visits the Gloriana, the royal barge for the diamond jubilee river pageant in June. A BBC strike threat against coverage has been averted with a pay agreement. Photograph: Jamie Wiseman/AFP

Broadcasting unions the National Union of Journalists, Bectu and Unite began balloting members last month over industrial action, after criticising BBC management for writing directly to staff about its intention to implement a 1% pay rise two months early in June.

The ballot has now been suspended after the unions and the BBC reached a joint agreement that will see the 1% pay increase being implemented.

However, the BBC's coverage of the Olympic torch arriving in Wales on Friday 25 May, still faces being hit by strike action by NUJ and Bectu members in a local dispute over the corporation's decision to dismiss the chair of the latter's BBC Cardiff branch, Heidi Williams.

The unions still regard the 1% pay offer as "derisory", but highlighted concessions including a commitment by the BBC to continue with an annual pay settlement reached by collective bargaining that will apply to all staff nationally, for the duration of the current licence fee settlement up to 2017.

"Both sides have accepted that there will be no movement from the current offer of 1% this year, but the BBC is committed to ensuring that pay settlements during this licence fee period go some way to reflect the cost of living, as far as these factors allow," the joint statement said.

"Both unions and management recognise that the BBC faces some very tough financial challenges for the remainder of the current licence fee period."

There is also an acceptance by both sides that "a continuous pattern of annual settlements which represent a real cut in pay are neither desirable nor sustainable".

"A great deal is expected from people in the BBC and whilst no one is immune from the impact of the reduced funding, employees must be paid fairly," the statement said.

"Ensuring that our people are rewarded fairly for the remainder of the licence fee period will be dependent on a variety of factors – some of which are unknown at this time – the impact of the economy on household (and licence fee) growth, inflation levels, commercial income, the achievement of identified savings, potential risks around the pension deficits, etc. Both management and unions will endeavour to ensure that a fair level of remuneration is integral to the BBC's future plans."

Other concessions, according to the unions, include the BBC compromising on plans to impose cuts on allowances for unpredictable working, introduce a compulsory ratings system for staff appraisals and undertaking to make greater effort to redeploy those made redundant internally.

BBC staff face the threat of about 2,000 job losses, according to the unions, in the coming years as part of the corporation's Delivering Quality First cost-cutting initiative.

Gerry Morrissey, Bectu general secretary, said: "There is absolutely no question that the BBC's handling of this year's pay talks will continue to anger staff and what is more, our members, not least in London, will suffer financially. However from the soundings we have taken, viewed nationally, pay was not the primary concern and in light of this we doubted the success of strike action over the jubilee weekend.

"However, putting basic pay to one side for the moment, we believe that this week's agreement with the BBC, incorporating as it does valuable concessions, not only on collective bargaining but on key allowances, appraisals and on redeployment, represents vital protections for staff which will resonate with members across the country."

Michelle Stanistreet, NUJ general secretary said: "We are now making constructive and positive progress with trying to find proper and long-term solutions. The immediate risk of redundancies at TV current affairs and the World Service have been averted. This has only been achieved because NUJ members have stood solidly together in opposition to compulsory redundancies.

"We have been deeply concerned by the failure of the redeployment process so the settlement today addresses the problem which we welcome. The BBC's stance on pay is disappointing, but the package of concessions on other pay-related issues and appraisals addresses key concerns for journalists across the BBC."

A BBC spokeswoman commented: "It is great news that the threat of a strike has been lifted and that BBC viewers will now be able to enjoy the diamond jubilee coverage without fear of interruption."

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